Death of a Partner MCQ Questions Class 12 are covered in this Article. Death of a Partner MCQ Test contains 9 questions. Answers to MCQ on Death of a Partner Class 12 Accountancy are available at the end of the last question. These MCQ have been made for Class 12 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
Death of a Partner MCQ Questions Class 12
1.Rajesh , Rakesh and Ramesh are partners sharing profits and losses in the ratio of (2/5) : (1/5) : (2/5). Ramesh died on 01-08-2017 and profit for the year 2017-18 were Rs. 36000. How much profit for the period from 1st April 2017 to 31st March 2018 will be credited to Ramesh ‘s Capital Account?
(a) Rs. 4000
(b) Rs. 13000
(c) Rs. 7200
(d) Rs. 4800
Answer
Answer: (d) Rs. 4800
Explanation: Profit for the year 2017-18 = Rs. 36000
Number of Month’s profit entitlement to Ramesh = 4
Total Month in a Year = 12
Ramesh’s share in profits = (Total profit for the year X months upto date of death X Ramesh’s share)/12
= 36000 x (4/12) x (2/5)
= Rs. 4800
2.Akash , Anoop and Anmol are partners sharing profits and losses in the ratio of (2/5) : (2/5): (1/5)Rs. 280000 , Rs. 280000 , Rs. 140000. They had a joint life policy of Rs. 700000, Surrender value of JLP in Balance Sheet is Rs. 200000. Anmol dies. What is the share of each partner in JLP?
(a) Rs. 280000 , Rs. 280000 , Rs. 140000
(b) Rs. 80000 , Rs. 80000 , Rs. 40000
(c) Rs. 13000 , Rs. 180000 , Rs. 90000
(d) Rs. 200000 , Rs. 200000 , Rs. 100000
Answer
Answer: (d) Rs. 200000 , Rs. 200000 , Rs. 100000
Explanation: Amount of policy to be distributed to partner = Policy value – Surrender value of joint life policy in Balance sheet
700000 – 200000
= Rs. 500000
Share of partners in joint life policy =
Akash’s share in policy 500000 X (2/5) = Rs. 200000
Anoop’s share in policy 500000 X (2/5) = Rs. 200000
Anmol’s share in policy 500000 X (1/5) = Rs. 100000
3.Ram , Rahim and Rahman are partners sharing profits and losses in the ratio of (2/4) : (1/4) : (1/4). They had a joint life policy of Rs. 500000, Surrender value of JLP in Balance Sheet is Rs. 100000, Rahman dies. What is the share of Rahman in JLP?
(a) Rs. 125000
(b) Rs. 25000
(c) Rs. 100000
(d) Rs. 90000
Answer
Answer: (c) Rs. 100000
Explanation: Amount of policy to be distributed to partner = Policy value – Surrender value of joint life policy in Balance sheet
500000 – 100000
= Rs. 400000
Share of partners in joint life policy =
Rahman’s share in policy 400000 X (1/4) = Rs. 100000
4.M , N and O are partners sharing profits and losses in the ratio of \(\cfrac{4}{10}\) :\(\cfrac{3}{10}\):\(\cfrac{3}{10}\). Goodwill of the firm was valued on the basis of 2 year’s purchase of the average profits of the last 2 years. Profits for the last 2 years was Rs. 30000 and Rs. 15000, O died. What is O’s share of goodwill
(a) Rs. 13500
(b) Rs. 30000
(c) Rs. 22500
(d) None of the above
Answer
Answer: (a) Rs. 13500
Explanation: Total profits of 2 years = 30000 + 15000
= Rs. 45000
Average profits = Total of profits / Total numbers of years
= 45000/2 = Rs. 22500
Value of goodwill = Average profits of 2 years X Number of years purchase
= 22500 x 2
= Rs. 45000
O’s share of goodwill = Value of goodwill x share of O in profits of the firm
= 45000 x (3/10)
= Rs. 13500
5.D , E and F are partners sharing profits and losses in the ratio of (1/8) :(3/8):(4/8). F died and (1/2)of his share is taken over by D and remaining by E. Calculate the new profit sharing ratio between D and E.
(a) 6 : 10
(b) 4 : 4
(c) 2 : 3
(d) None of the above
Answer
Answer: (a) 6 : 10
Explanation: Old ratio between D E and F = 1 : 3 : 4
Share of F taken over by D = (4/8) X (1/2) = 4/16
Share of F taken over by E = (4/8) – (4/16) = (8−4)/16 = 4/16
New share of D = (1/8) + (4/16) = (2+4)/16 = 6/16
New share of E = (3/8) + (4/16) = (6+4)/16 = 10/16
New ratio = (6/16) : (10/16)
= 6 : 10
Gaining ratio = The ratio in which the continuing partners acquire the outgoing (deceased ) partner share
New share – Old share
Gaining ratio between D and E = (4/16) :(4/16)
= 4 : 4
Death of a Partner MCQ Questions Class 12
6.Shiv , Shakti and Shanti are partners sharing profits and losses in the ratio of (5/10) :(3/10):(2/10). Shakti died. What will be the gaining ratio between Shiv and Shanti ?
(a) 15 : 6
(b) 5 : 3
(c) 1 : 2
(d) 5 : 1
Answer
Answer: (a) 15 : 6
Explanation: New Ratio between Shiv and Shanti after retirement of Shakti = (5/7) : (2/7)
Gaining Ratio = New Ratio – Old Ratio
Shiv’s Gaining Ratio = (5/7) – (5/10) = (50/70)- (35/70) = 15/70
Shanti’s Gaining Ratio = (2/7) -(2/10) = (20/70) – (14/70) = 6/70
Gaining Ratio = 15 : 6
7.Sai , Sharan and Simran are partners sharing profits and losses in the ratio of \(\cfrac{2}{9}\) :\(\cfrac{4}{9}\):\(\cfrac{3}{9}\). Goodwill of the firm was valued at Rs. 270000, Sharan dies. What is Sharan’s share of goodwill?
(a) Rs. 60000
(b) Rs. 90000
(c) Rs. 120000
(d) Rs. 20000
Answer
Answer: (c) Rs. 120000
Explanation: Total value of Goodwill = Rs. 270000
Sharan’s share in profits = (4/9)
Sharan’s share of goodwill = Total value of goodwill x Sharan s share in profits
= 270000 X (4/9)
= Rs. 120000
8.B, C and D are partners sharing profits and losses in the ratio of 1 : 1 : 2. B died on 01-Jun 2015. His share of profits from the closure of the last accounting year i.e. 31-Mar 2014 till the date of death was to be calculated on the basis of the average profits of two completed years before death. Profit for the year 2013 and 2014 were Rs. 50000 and Rs. 70000 respectively. Calculate B ‘s share of profit till the death.
(a) Rs. 35000
(b) Rs. 12500
(c) Rs. 2500
(d) None of these
Answer
Answer: (c) Rs. 2500
Explanation: Total months upto the date of B’s death = 2
Total months in a year = 12
Total profit for 2 years = 50000 + 70000
= Rs. 120000
Average profit = 120000/2
= Rs. 60000
Profit for the calculation of B’s share = 60000 X (2/12)
= Rs. 10000
B’s share = 10000 X (1/4)
= Rs. 2500
9.D , E and F are partners sharing profits and losses in the ratio of 2 : 2 : 1. D died on 31-Mar-2016 and after all the adjustments his capital account shows the credit balance of Rs. 100000. The amount due to X is to be paid on 01-Jul-2016. What will be the amount which D’s executors are entitled to receive when profit upto 01-Jul-2016 was Rs. 50000 and total capital of D and E was Rs. 150000?
(a) Rs. 120000
(b) Rs. 100000
(c) Rs. 101500
(d) None of these
Answer
Answer: (a) Rs. 120000
Explanation: Months upto the date of payment = 3
Month in a year = 12
Calculation of amount which executors of D are entitled
Capital balance after all adjustments = Rs. 100000
1) Add: Interest @6% p.a. on 100000 upto the date of payment
100000 x (6/100) x (3/12) = Rs. 1500
OR
2) Add: Share in profit
Profit from the last balance sheet (X) Outstanding amount of outgoing partner/(Capital of all partners + Balance of
outgoing partner till the date of death or retirement)
= 100000 X 50000/(150000+100000)
(100000/(150000+100000)) X 50000
(100000/250000) X 50000
= Rs. 20000
D’s executors are entitled to choose higher from the above two i.e interest @6% p.a or share in profit as per Section
37 of Partnership Act,1932
Total Amount Due = 100000 + 20000
= Rs. 120000